By: Joe Byrne, CTO Advisor, Cisco Observability
While the use of digital services and applications for everything from streaming content and shopping, to banking or connecting with friends and relatives is on the rise, people are becoming even more sophisticated and discerning in their use of applications. With so many top-notch choices to pick from, consumers are no longer willing to put up with ‘adequate’ digital experiences. Application performance and security are now non-negotiable — consumers expect this as standard. They’re priding themselves on using only the most innovative applications and they’re expecting brands to raise the bar for digital experience in 2024.
This sentiment has given rise to the phenomenon of Super Apps, which combine several digital services into a single application. The latest research from Cisco, The App Attention Index 2023: Beware the Application Generation, reveals a strong appetite for Super Apps, with consumers pointing to a range of potential benefits. In the Middle East, we are already seeing companies rise to the occasion with Careem, Noon, Talabat and others all making their Super App intentions clear.
Brands should beware, though, as the Cisco study also reveals significant concern about the potential consequences of Super Apps not working as they should. With expectations around digital experience higher than ever, and consumers being unforgiving of poorly performing applications, they fear a bad digital experience when using a Super App could be hugely inconvenient and frustrating.
It may be tempting for the region’s many conglomerates to make their foray into the domain of Super Apps, but brands that step up to the plate must be keenly aware of the potential downsides. Any slip-up in performance or security of a Super App is likely to lead to a considerable loss of customers, revenue, and reputation.
The rise of Super Apps
Super Apps are already popular in Asia — in China, for instance, WeChat has a penetration rate of close to 90% — and the company is now starting to gain traction in some Western economies. Consequently, the global Super Apps market is forecasted to grow at a compound annual growth rate of 26% from 2022 to reach $240.7 billion by 2028. And Gartner predicts that around 50 per cent of the global population will be engaging with more than one super app by 2027.
The projections are supported by our study which found that in total, 73% of consumers state they feel positive about the prospect of using Super Apps. And among younger consumers, ages 18-34, this figure soars to 80%.
These consumers believe that Super Apps will allow them to save time, simplify their lives, and help reduce a sense of ‘application clutter’ — where they are overwhelmed with the number of different digital services they are currently using.
For Super Apps, performance is paramount
While the overall sentiment towards Super Apps is highly positive, consumers have been quick to voice their concerns. With Super Apps collating so many essential services, the potential for considerable disruption and inconvenience to occur when they don’t perform as expected is amplified. 53% of consumers admit that if a Super App failed to perform properly, they would have negative feelings towards all the brands associated with that Super App. When it comes to Super Apps, consumers are clear: the experience must be perfect every time.
And worryingly for brands, these expectations too are now higher than ever. Our study highlights how consumers are becoming even more discerning in their use of digital services. 62% report their expectations for digital experiences are far higher than they were two years ago, and 64% state they are less forgiving of poor digital services.
Organizations that remain committed to providing a Super App need to tread carefully. They need to recognize they are walking a metaphoric tightrope. Customers are crying out for innovation and the next big evolution in digital experience — but they’ll react furiously if new digital services fail to live up to their expectations. They’ll delete Super Apps and turn their back on every brand involved. And they’ll share their negative experiences far and wide.
Driving Super App adoption through performance
As the race to deliver the Middle East’s most impressive Super App heats up, brands will need to leverage every advantage they can. While it may be tempting to prioritize functionality and rich features sets — which in essence are the defining characteristic of Super Apps — success will be found by brands that place application availability, performance and security at the center of their strategies. Application owners can’t afford to deliver anything other than the very best, most seamless, and secure digital experiences.
Of course, this is far easier said than done. As any technologist will attest, optimizing application performance is becoming more difficult daily. Today’s application environments are more complex and dispersed than ever. Additionally, many technologists don’t have the visibility they need for applications running across hybrid environments. This makes it almost impossible for them to identify and resolve issues before they negatively impact end user experience.
This is why application observability is rapidly emerging as a must-have solution for the modern enterprise. With it, technologists can quickly detect issues and understand root causes, allowing for faster resolution. Additionally, by correlating application availability, performance, and security data with key business metrics, they can identify and prioritize those issues which could pose the greatest threat to customers and the business.
The immense success of WeChat and other Super Apps in Asia highlights the potential of this market. As consumers get tired of endless disparate applications, they’ve begun to seek out simplicity. For today’s more sophisticated and discerning consumer, Super Apps promise to unlock new levels of convenience and deepen brand relationships. However, these benefits will only be realized by companies who are able to deliver on digital experience. Application performance and security will undoubtedly play a big part in deciding which brands are able to take full advantage of the Super App opportunity.